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Does the Choice of Business Entity Really Matter? Absolutely! One of the very first decisions that someone getting ready to start a business has to make is what form of business entity to operate in. This is a complex and very important decision and should not be taken lightly. This decision will have a considerable impact on a number of very important business and tax consequences, including protection of the owners against outside liabilities, shielding of personal assets from business risk, the ability of the business to raise capital and obtain financing from commercial lenders, transferability of interests, the ability to qualify for certain favorable tax benefits, the building of value and exit strategies, and the ability to integrate with your estate plan, to name but a few. The initial business planning involves quite a bit more than entity choice and formation. At the start of any new business there are a host of decisions that need to be made concerning business processes, record keeping, reporting, compliance procedures, economic and capital structure, labor structure, procedures and compensation, insurance coverage, etc. Many of these mattes have a legal component or present varying degrees of risk exposure, all of which we assist the business owner is addressing so that the business has a solid foundation and initial structure. Additionally, proper business planning allows you to prepare for your future in three distinct ways: ensuring that your business provides you with the maximum return, protecting the welfare of your family, and protecting your business entity and operations.

Formal Updating and Maintenance Many people do not understand how an estate plan works and provides them value. Frequently we see customers who have had an estate plan done for them 20 or more years ago and it has sat on the shelf for all that time and never been touched or fully funded. Estate planning and the Estate Plan is a very dynamic process and it is an investment in your family’s future. Your Estate Plan can be impacted by many things: · Change in your personal, family or financial situation · Change in the tax or non-tax legal structure · The development of new wealth preservation structures and strategies Given this continuous process of change, your estate plan will not accomplish its purpose if it is never updated. The costs of failing to update are typically far greater than keeping your plan current. A good Estate Plan changes along with you and adapts to your changing circumstances; it meets your changing goals and keeps you in control of the process and the results. Continue Reading